Interest rate rises could end but these questions remain for Bank of England
Interest rate rises could end this month Andrew Bailey, the Governor of the Bank of England, has indicated.
This news should be welcomed by homeowners, but mortgage holders are still not out of the woods yet.
It comes as UK house prices suffer sharpest fall in 14 years.
Halifax have said that prices fell by 4.6% as high interest rates dent homebuyer demand.
A typical UK home’s price has dropped by about £14,000 over the past 12 months to £279,569.
The lowest level since early 2022.
Interest rate rises
Governor Andrew Bailey has told MPs that the period when it was “clear that rates needed to rise going forwards” is now coming to an end.
He added: “I think we are much nearer now to the top of the cycle.”
However, he warned that he was unsure if rates could rise again on 21st September, which is the date for the next Bank’s monetary policy committee meeting.
The Bank of England’s main interest rate is at 5.25 per cent. The rate has been hiked at every possible opportunity since December 2021.
Currency traders reacted to the message by selling the pound, pushing sterling down below $1.25 for the first time in three months.